DuPont said the transaction will satisfy DuPont’s commitments to the European Commission in connection to the European Commission’s conditional regulatory clearance of DuPont’s planned merger with the Dow Chemical Co.
The transaction between DuPont and FMC is expected to close in the fourth quarter of 2017 and is subject to the closing of the merger between DuPont and Dow. DuPont and Dow have amended their merger agreement to extend the “Outside Date” to Aug. 31. DuPont and Dow anticipate their merger’s closing to occur between Aug. 1 and Sept. 1.
FMC’s Health & Nutrition business generated more than $700 million in revenues in 2016 from the two main segments of texturants as food ingredients and pharmaceutical excipients. DuPont said the business complements its existing Nutrition & Health business, giving it broader offerings and an expanded footprint.
|Edward D. Breen, chairman and CEO DuPont.|
“Our intended independent agriculture company will continue to benefit from the combined, complementary strengths of DuPont and Dow, which will include greatly expanded offerings and a robust pipeline across seed germplasm, biotech traits and crop protection to provide greater choice and innovation to growers around the world,” said Edward D. Breen, chairman and chief executive officer of Wilmington, Delaware, U.S.-based DuPont. “At the same time, we are significantly enhancing our Nutrition & Health capabilities, a key area of growth and opportunity for the intended independent specialty products company.”
FMC will acquire DuPont’s cereal broadleaf herbicides and chewing insecticides portfolio, including Rynaxypyr, Cyazypry and Indoxacarb. FMC also will acquire the DuPont crop protection research and development pipeline and organization, excluding seed treatment, nematicides, and late-stage research and development programs, which DuPont will continue to develop and bring to market. The assets that DuPont is divesting generated revenues of about $1.4 billion in 2016.
|Pierre Brondeau, president, CEO and chairman of FMC.|
“This is a significant step forward for FMC and for our Agricultural Solutions business in particular,” said Pierre Brondeau, president, CEO and chairman of Philadelphia, Pennsylvania, U.S.-based FMC. “The combination of market-leading products from DuPont’s crop protection portfolio and its world-class R&D capabilities will transform our Agricultural Solutions business into a tier-one ag technology company.”Once the transaction closes, FMC estimates its Agricultural Solutions business will have estimated annual revenues of about $3.8 billion.